Macatawa Bank Corporation (NASDAQ: MCBC), the holding company for
Macatawa Bank (collectively, the “Company”), today announced its
results for the second quarter 2022.
- Net income of $6.6 million in second quarter 2022 versus $6.0
million in first quarter 2022 and $7.8 million in second quarter
2021
- Net interest income of $14.8 million in second quarter 2022
versus $12.7 million in first quarter 2022 and $14.5 million in
second quarter 2021
- Strong credit metrics and net loan recoveries resulted in no
provision for loan losses for the quarter
- Continued loan portfolio growth – third quarter in a row
- Grew investment securities portfolio by $187.7 million in
second quarter 2022 to supplement loan growth and continue
strategic deployment of excess liquidity
- Reduction of $55.0 million in FHLB borrowings, resulting in
over $650,000 in annual interest expense savings
The Company reported net income of $6.6 million, or
$0.19 per diluted share, in second quarter 2022 compared to $7.8
million, or $0.23 per diluted share, in second quarter
2021. For the first six months of 2022, the Company
reported net income of $12.6 million, or $0.37 per diluted share,
compared to $15.6 million, or $0.46 per diluted share, for the same
period in 2021.
"We are pleased to report solid results for the
second quarter of the year,” said Ronald L. Haan, President and CEO
of the Company. “We are encouraged to see our strategy of
maintaining an asset-sensitive balance sheet paying off as we have
entered a rising rate environment. Net interest income for the
second quarter 2022 was $2.2 million higher than the first quarter
2022 and $386,000 higher than in the second quarter 2021 reflecting
benefits from federal funds rate increases and growth in our
investment securities portfolio. Net interest income in the 2021
periods included high levels of fee income from PPP loans, which
were mostly forgiven by the end of 2021. We are again encouraged by
our commercial loan origination activity and pipeline of new loan
opportunities while maintaining strong credit quality. Regarding
fee income, while mortgage gains are down, we are experiencing
increases in other areas including wealth management fees, debit
card interchange income and treasury management fees. Total
non-interest expenses were up only slightly in the second quarter
2022 compared to the same period in the prior year, despite
significant inflationary pressure.”
Mr. Haan concluded: "Consistent loan demand and
rising interest rates will continue to have a positive impact on
our high levels of liquidity and provide a catalyst for strong
revenue growth during the remainder of 2022. We have a strong
balance sheet that is very well-positioned to deliver further
improvement in operating performance throughout the remainder of
the year. High inflation, higher interest rates and continuing
disruptions to the supply chain may result in additional pressure
on the economy. The months ahead will undoubtedly present new
challenges, and we remain committed to keeping a diligent eye on an
ever-changing operating environment.”
Operating ResultsNet interest
income for the second quarter 2022 totaled $14.8 million, an
increase of $2.2 million from first quarter 2022 and an increase of
$386,000 from the second quarter 2021. Net interest margin for
second quarter 2022 was 2.19 percent, up 34 basis points from the
first quarter 2022 and the same as second quarter 2021. Net
interest income for the second quarter 2022 reflected $199,000 in
interest and fees from loans originated under the PPP, compared to
$1.1 million in first quarter 2022 and $3.0 million in second
quarter 2021. There were just $94,000 in net deferred PPP fees
remaining as of June 30, 2022. Net interest income benefited in the
second quarter 2022 versus the first quarter 2022 and second
quarter 2021 by the significant increase in the federal funds rate
in March 2022, May 2022 and June 2022, totaling 150 basis points
and the related increases in rate indices impacting the Company’s
variable rate loan portfolios. Net interest income also benefited
from growth in the investment securities portfolio to further
deploy excess liquid funds held by the Company. Interest on
investments increased by $1.2 million over the first quarter 2022
and by $1.8 million over the second quarter 2021.
During second quarter 2022, the Federal Home Loan
Bank (“FHLB”) exercised put options on $35.0 million of advances
and the Company voluntarily prepaid $20.0 million in FHLB advances.
Prepayment fees on these advances totaled $87,000 and were included
in interest expense in the second quarter 2022. The elimination of
these advances will save the Company over $650,000 in annual
interest expense.
On July 7, 2021, the Company redeemed its remaining
$20.0 million of trust preferred securities. The Company estimates
that this saves approximately $600,000 of interest expense
annually, with regulatory capital remaining significantly above
levels required to be categorized as well capitalized.
Non-interest income increased $166,000 in second
quarter 2022 compared to first quarter 2022 and decreased $1.0
million from second quarter 2021. Income from debit and credit
cards was up by $163,000 in the second quarter 2022 compared to
first quarter 2022 and was up $78,000 compared to second quarter
2021. Gains on sales of mortgage loans in second quarter 2022 were
down $109,000 compared to first quarter 2022 and were down $1.1
million from second quarter 2021. The Company originated $8.4
million in mortgage loans for sale in second quarter 2022 compared
to $10.1 million in first quarter 2022 and $39.2 million in second
quarter 2021. Deposit service charge income, including treasury
management fees, was up $7,000 in second quarter 2022 compared to
first quarter 2022 and was up $153,000 from second quarter 2021.
Other noninterest income was up $105,000 compared to first quarter
2022 and was down $158,000 from second quarter 2021.
Non-interest expense was $11.9 million for second
quarter 2022, compared to $11.7 million for first quarter 2022 and
$11.7 million for second quarter 2021. The largest component of
non-interest expense was salaries and benefits expenses. Salaries
and benefits expenses were up $114,000 compared to first quarter
2022 and were down $100,000 compared to second quarter 2021. The
increase compared to first quarter 2022 was due primarily to a
higher level of salary and other compensation resulting from merit
adjustments to base pay effective April 1, 2022, while the decrease
from second quarter 2021 was due largely to a lower level of
commissions from mortgage production as volume decreased. The table
below identifies the primary components of the changes in salaries
and benefits between periods.
Dollars in 000s |
|
Q2 2022toQ1 2022 |
|
Q2 2022toQ2 2021 |
|
|
|
|
|
|
Salaries and other compensation |
|
$ |
146 |
|
|
$ |
63 |
|
Salary deferral from commercial
loans |
|
|
(4 |
) |
|
|
50 |
|
Bonus accrual |
|
|
(1 |
) |
|
|
3 |
|
Mortgage production – variable
comp |
|
|
(3 |
) |
|
|
(239 |
) |
401k matching contributions |
|
|
(24 |
) |
|
|
85 |
|
Medical insurance costs |
|
|
--- |
|
|
|
(62 |
) |
Total change in salaries and benefits |
|
$ |
114 |
|
|
$ |
(100 |
) |
Occupancy expenses were down $102,000 in second
quarter 2022 compared to first quarter 2022 and were up $76,000
compared to the second quarter 2021. Occupancy expenses in first
quarter 2022 were elevated due to higher snow removal expenses. The
increase compared to second quarter 2021 was due to higher building
maintenance costs incurred in the second quarter 2022. FDIC
assessment expense was $197,000 in second quarter 2022 compared to
$180,000 in first quarter 2022 and $159,000 in second quarter 2021.
FDIC assessment expense is impacted by changes in deposit balances
between periods. Legal and professional fees were up $77,000 in
second quarter 2022 compared to first quarter 2022 and were down
$3,000 compared to second quarter 2021. The increase in second
quarter 2022 includes higher regulatory examination fees and legal
expense, which was down in first quarter 2022. Data processing
expenses were up $41,000 in second quarter 2022 compared to first
quarter 2022 and were up $69,000 compared to second quarter 2021.
Other categories of non-interest expense were relatively flat
compared to first quarter 2022 and second quarter 2021 due to a
continued focus on expense management.
Federal income tax expense was $1.5 million for
second quarter 2022, $1.4 million for first quarter 2022, and $1.8
million for second quarter 2021. The effective tax rate was 18.5
percent for second quarter 2022, compared to 18.8 percent for first
quarter 2022 and 19.1 percent for second quarter 2021.
Asset QualityNo provision for loan
losses was recorded in second quarter 2022 while a provision
benefit of $1.5 million was recorded in first quarter 2022 and a
provision benefit of $750,000 was recorded in second quarter 2021.
Net loan recoveries for second quarter 2022 were $15,000, compared
to first quarter 2022 net loan recoveries of $227,000 and second
quarter 2021 net loan recoveries of $104,000. At June 30, 2022, the
Company had experienced net loan recoveries in twenty-eight of the
past thirty quarters. Total loans past due on payments
by 30 days or more amounted to $197,000 at June 30, 2022, versus
$171,000 at March 31, 2022 and $126,000 at June 30, 2021.
Delinquencies at June 30, 2022 were comprised of just five
individual loans. Delinquency as a percentage of total loans was
just 0.02 percent at June 30, 2022, well below the Company’s peer
level.
The allowance for loan losses of $14.6 million was
1.32 percent of total loans at June 30, 2022, compared to $14.6
million or 1.33 percent of total loans at March 31, 2022, and $16.8
million or 1.36 percent at June 30, 2021. The ratio at June 30,
2022, March 31, 2022 and June 30, 2021 includes PPP loans, which
are fully guaranteed by the SBA and receive no allowance
allocation. The ratio excluding PPP loans was 1.32 percent at June
30, 2022, 1.34 percent at March 31, 2022 and 1.57 percent at June
30, 2021. The coverage ratio of allowance for loan losses to
nonperforming loans continued to be strong and significantly
exceeded 1-to-1 coverage at 163-to-1 as of June 30, 2022.
At June 30, 2022, the Company's nonperforming loans
were $90,000, representing 0.01 percent of total loans. This
compares to $90,000 (0.01 percent of total loans) at March 31, 2022
and $433,000 (0.03 percent of total loans) at June 30, 2021. Other
real estate owned and repossessed assets were $2.3 million at June
30, 2022, compared to $2.3 million at March 31, 2022 and $2.3
million at June 30, 2021. Total non-performing assets, including
other real estate owned and nonperforming loans, were $2.4 million,
or 0.09 percent of total assets, at June 30, 2022. Total
nonperforming assets, including other real estate owned and
nonperforming loans, decreased by $343,000 from June 30, 2021 to
June 30, 2022.
A break-down of non-performing loans is shown in
the table below.
Dollars in 000s |
|
June 30, 2022 |
|
Mar 31, 2022 |
|
Dec 31, 2021 |
|
Sept 30, 2021 |
|
June 30, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
$ |
5 |
|
$ |
5 |
|
$ |
5 |
|
$ |
332 |
|
$ |
341 |
|
Commercial and Industrial |
|
|
1 |
|
|
1 |
|
|
1 |
|
|
--- |
|
|
--- |
|
Total Commercial Loans |
|
|
6 |
|
|
6 |
|
|
6 |
|
|
332 |
|
|
341 |
|
Residential Mortgage Loans |
|
|
84 |
|
|
84 |
|
|
86 |
|
|
88 |
|
|
92 |
|
Consumer Loans |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Total Non-Performing Loans |
|
$ |
90 |
|
$ |
90 |
|
$ |
92 |
|
$ |
420 |
|
$ |
433 |
|
A break-down of non-performing assets is shown in
the table below.
Dollars in 000s |
|
June 30,2022 |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
June 30,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Performing Loans |
|
$ |
90 |
|
$ |
90 |
|
$ |
92 |
|
$ |
420 |
|
$ |
433 |
|
Other Repossessed Assets |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
|
--- |
|
Other Real Estate Owned |
|
|
2,343 |
|
|
2,343 |
|
|
2,343 |
|
|
2,343 |
|
|
2,343 |
|
Total Non-Performing Assets |
|
$ |
2,433 |
|
$ |
2,433 |
|
$ |
2,435 |
|
$ |
2,763 |
|
$ |
2,776 |
|
Balance Sheet, Liquidity and
Capital
Total assets were $2.78 billion at June 30, 2022, a
decrease of $148.7 million from $2.93 billion at March 31, 2022 and
a decrease of $159.9 million from $2.94 billion at June 30, 2021.
Assets were elevated at each period-end due to customers holding a
higher level of deposits during the COVID-19 pandemic, including
balances from PPP loan proceeds.
The Company continued to increase its investment
portfolio to deploy some of its excess liquidity. The Company’s
investment portfolio primarily consists of U.S. treasury and agency
securities, agency mortgage backed securities and various municipal
securities. Total securities were $788.3 million at June 30, 2022,
an increase of $187.7 million from $600.7 million at March 31, 2022
and an increase of $426.5 million from $361.8 million at June 30,
2021.
Total loans were $1.11 billion at June 30, 2022, an
increase of $10.0 million from $1.10 billion at March 31, 2022 and
a decrease of $126.4 million from $1.24 billion at June 30,
2021.
Commercial loans decreased by $129.7 million from
June 30, 2021 to June 30, 2022, partially offset by an increase of
$1.6 million in the residential mortgage portfolio, and an increase
of $1.7 million in the consumer loan portfolio. Within commercial
loans, commercial real estate loans decreased by $10.8 million and
commercial and industrial loans decreased by $118.9 million.
However, the largest decrease in commercial loans was in PPP loans
which decreased by $166.9 million due to forgiveness by the SBA.
Excluding PPP loans, total commercial loans increased by $37.1
million. The loan growth experienced in this time period was the
direct result of both new loan prospecting efforts and existing
customers beginning to borrow more for expansion of their
businesses as pandemic risks to economic conditions decrease.
The composition of the commercial loan portfolio is
shown in the table below:
Dollars in 000s |
|
June 30,2022 |
|
Mar 31,2022 |
|
Dec 31,2021 |
|
Sept 30,2021 |
|
June 30,2021 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Development |
|
$ |
107,325 |
|
$ |
104,945 |
|
$ |
103,755 |
|
$ |
104,636 |
|
$ |
102,608 |
|
Other Commercial Real Estate |
|
|
411,778 |
|
|
417,368 |
|
|
412,346 |
|
|
422,574 |
|
|
427,291 |
|
Commercial Loans Secured by Real Estate |
|
|
519,103 |
|
|
522,313 |
|
|
516,101 |
|
|
527,210 |
|
|
529,899 |
|
Commercial and Industrial |
|
|
407,788 |
|
|
402,854 |
|
|
378,318 |
|
|
356,812 |
|
|
359,846 |
|
Paycheck Protection Program |
|
|
2,791 |
|
|
7,393 |
|
|
41,939 |
|
|
77,571 |
|
|
169,679 |
|
Total Commercial Loans |
|
$ |
929,682 |
|
$ |
932,560 |
|
$ |
936,358 |
|
$ |
961,593 |
|
$ |
1,059,424 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank owned life insurance was $53.0 million at June
30, 2022, up $243,000 from $52.7 million at March 31, 2022 and up
$456,000 from $52.5 million at June 30, 2021 due to earnings on the
underlying investments.
Total deposits were $2.49 billion at June 30, 2022,
down $87.7 million, or 3.4 percent, from $2.58 billion at March 31,
2022 and down $105.5 million, or 4.1 percent, from $2.60 billion at
June 30, 2021. Demand deposits were down $53.7 million at the end
of the second quarter 2022 compared to the end of the first quarter
2022 and were down $154.6 million compared to the end of the second
quarter 2021. Money market deposits and savings deposits were down
$31.2 million from the end of the first quarter 2022 and were up
$63.0 million from the end of the second quarter 2021. Certificates
of deposit were down $7.8 million at June 30, 2022 compared to
March 31, 2022 and were down $13.9 million compared to June 30,
2021 as customers reacted to changes in market interest rates. As
deposit rates dropped during the pandemic, the Company experienced
some shifting between deposit types and, while balances have
decreased over the last year, overall, deposit customers are
continuing to hold higher levels of liquid deposit balances due to
uncertainty related to economic conditions. The Company continues
to be successful at attracting and retaining core deposit
customers. Customer deposit accounts remain insured to the highest
levels available under FDIC deposit insurance.
Other borrowed funds of $30.0 million at June 30,
2022 were down $55.0 million compared to $85.0 million at March 31,
2022 and were down $30.0 million compared to $60.0 million at June
30, 2021. The decrease in the second quarter 2022 was largely due
to the FHLB exercising its put options on a $25.0 million advance
carrying a rate of 0.05% and a $10.0 million advance carrying a
rate of 0.45%. Both advances were repaid by the Company during the
second quarter 2022. In addition, during the second quarter 2022,
the Company prepaid $20.0 million in FHLB advances, with interest
rates ranging from 2.91% to 3.05%. Prepayment fees totaled $87,000
and were included in interest expense in the second quarter 2022.
Paying these advances off early will save the Company over $650,000
in annual interest expense, net of the prepayment fees
incurred.
Long-term debt decreased by $20.6 million from June
30, 2021 to June 30, 2022 due to the redemption of the Company’s
remaining $20.6 million trust preferred securities on July 7, 2021.
The Company had no long-term debt remaining at June 30, 2022.
The Company's total risk-based regulatory capital
ratio at June 30, 2022 was consistent with the ratio at December
31, 2021. Macatawa Bank’s risk-based regulatory capital ratios
continue to be at levels considerably above those required to be
categorized as “well capitalized” under applicable regulatory
capital guidelines. As such, the Bank was categorized as "well
capitalized" at June 30, 2022.
About Macatawa BankHeadquartered
in Holland, Michigan, Macatawa Bank offers a full range of banking,
retail and commercial lending, wealth management and ecommerce
services to individuals, businesses and governmental entities from
a network of 26 full-service branches located throughout
communities in Kent, Ottawa and northern Allegan counties. The bank
is recognized for its local management team and decision making,
along with providing customers excellent service, a rewarding
experience and superior financial products. Macatawa Bank has been
recognized for ten years as “West Michigan’s 101 Best and Brightest
Companies to Work For”. For more information, visit
www.macatawabank.com.
CAUTIONARY STATEMENT: This press release contains
forward-looking statements that are based on management's current
beliefs, expectations, assumptions, estimates, plans and
intentions. Forward-looking statements are identifiable by words or
phrases such as “anticipates,” "believe," "expect," "may,"
"should," "will," ”intend,” "continue," "improving," "additional,"
"focus," "forward," "future," "efforts," "strategy," "momentum,"
"positioned," and other similar words or phrases. Such statements
are based upon current beliefs and expectations and involve
substantial risks and uncertainties which could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements. These statements include, among
others, statements related to risks and uncertainties related to,
and the impact of, the COVID-19 pandemic on the business, financial
condition and results of operations of our company and our
customers, trends in our key operating metrics and financial
performance, future levels of earnings and profitability, future
levels of earning assets, future asset quality, future growth,
future interest rates and future net interest margin. All
statements with references to future time periods are
forward-looking. Management's determination of the provision and
allowance for loan losses, the appropriate carrying value of
intangible assets (including deferred tax assets) and other real
estate owned and the fair value of investment securities (including
whether any impairment on any investment security is temporary or
other-than-temporary and the amount of any impairment) involves
judgments that are inherently forward-looking. Our ability to sell
other real estate owned at its carrying value or at all, reduce
non-performing asset expenses, utilize our deferred tax asset,
successfully implement new programs and initiatives, increase
efficiencies, maintain our current level of deposits and other
sources of funding, maintain liquidity, respond to declines in
collateral values and credit quality, improve profitability, and
produce consistent core earnings is not entirely within our control
and is not assured. The future effect of changes in the real
estate, financial and credit markets and the national and regional
economy on the banking industry, generally, and Macatawa Bank
Corporation, specifically, are also inherently uncertain. These
statements are not guarantees of future performance and involve
certain risks, uncertainties and assumptions ("risk factors") that
are difficult to predict with regard to timing, extent, likelihood
and degree of occurrence. Therefore, actual results and outcomes
may materially differ from what may be expressed in or implied by
such forward-looking statements. Macatawa Bank Corporation does not
undertake to update forward-looking statements to reflect the
impact of circumstances or events that may arise after the date of
the forward-looking statements.
Risk factors include, but are not limited to, the
risk factors described in "Item 1A - Risk Factors" of our Annual
Report on Form 10-K for the year ended December 31, 2021.
These and other factors are representative of the risk factors that
may emerge and could cause a difference between an ultimate actual
outcome and a preceding forward-looking statement.
MACATAWA
BANK CORPORATION |
|
CONSOLIDATED
FINANCIAL SUMMARY |
|
(Unaudited) |
|
(Dollars in thousands except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Six Months
Ended |
|
|
|
|
|
|
|
2nd
Qtr |
|
1st
Qtr |
|
2nd
Qtr |
|
June 30 |
|
EARNINGS SUMMARY |
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Total
interest income |
|
|
|
|
|
$ |
15,435 |
|
|
$ |
13,143 |
|
|
$ |
15,184 |
|
|
$ |
28,578 |
|
|
$ |
30,458 |
|
|
Total
interest expense |
|
|
|
|
|
|
592 |
|
|
|
478 |
|
|
|
727 |
|
|
|
1,070 |
|
|
|
1,511 |
|
|
Net interest income |
|
|
|
|
|
|
14,843 |
|
|
|
12,665 |
|
|
|
14,457 |
|
|
|
27,508 |
|
|
|
28,947 |
|
|
Provision
for loan losses |
|
|
|
|
|
|
- |
|
|
|
(1,500 |
) |
|
|
(750 |
) |
|
|
(1,500 |
) |
|
|
(750 |
) |
|
Net interest income after provision for loan
losses |
|
|
|
|
|
|
14,843 |
|
|
|
14,165 |
|
|
|
15,207 |
|
|
|
29,008 |
|
|
|
29,697 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposit
service charges |
|
|
|
|
|
|
1,218 |
|
|
|
1,211 |
|
|
|
1,065 |
|
|
|
2,430 |
|
|
|
2,057 |
|
|
Net gains on
mortgage loans |
|
|
|
|
|
|
199 |
|
|
|
308 |
|
|
|
1,311 |
|
|
|
508 |
|
|
|
3,326 |
|
|
Trust
fees |
|
|
|
|
|
|
1,096 |
|
|
|
1,088 |
|
|
|
1,133 |
|
|
|
2,184 |
|
|
|
2,138 |
|
|
Other |
|
|
|
|
|
|
2,618 |
|
|
|
2,358 |
|
|
|
2,660 |
|
|
|
4,974 |
|
|
|
5,186 |
|
|
Total non-interest income |
|
|
|
|
|
|
5,131 |
|
|
|
4,965 |
|
|
|
6,169 |
|
|
|
10,096 |
|
|
|
12,707 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-INTEREST
EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits |
|
|
|
|
|
|
6,402 |
|
|
|
6,289 |
|
|
|
6,502 |
|
|
|
12,691 |
|
|
|
12,914 |
|
|
Occupancy |
|
|
|
|
|
|
1,071 |
|
|
|
1,172 |
|
|
|
994 |
|
|
|
2,243 |
|
|
|
2,031 |
|
|
Furniture
and equipment |
|
|
|
|
|
|
988 |
|
|
|
1,016 |
|
|
|
978 |
|
|
|
2,004 |
|
|
|
1,915 |
|
|
FDIC
assessment |
|
|
|
|
|
|
197 |
|
|
|
180 |
|
|
|
159 |
|
|
|
377 |
|
|
|
329 |
|
|
Other |
|
|
|
|
|
|
3,255 |
|
|
|
3,082 |
|
|
|
3,085 |
|
|
|
6,337 |
|
|
|
6,014 |
|
|
Total non-interest expense |
|
|
|
|
|
|
11,913 |
|
|
|
11,739 |
|
|
|
11,718 |
|
|
|
23,652 |
|
|
|
23,203 |
|
|
Income
before income tax |
|
|
|
|
|
|
8,061 |
|
|
|
7,391 |
|
|
|
9,658 |
|
|
|
15,452 |
|
|
|
19,201 |
|
|
Income tax
expense |
|
|
|
|
|
|
1,493 |
|
|
|
1,391 |
|
|
|
1,840 |
|
|
|
2,884 |
|
|
|
3,605 |
|
|
Net
income |
|
|
|
|
|
$ |
6,568 |
|
|
$ |
6,000 |
|
|
$ |
7,818 |
|
|
$ |
12,568 |
|
|
$ |
15,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
|
|
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.23 |
|
|
$ |
0.37 |
|
|
$ |
0.46 |
|
|
Diluted
earnings per common share |
|
|
|
|
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.23 |
|
|
$ |
0.37 |
|
|
$ |
0.46 |
|
|
Return on
average assets |
|
|
|
|
|
|
0.92 |
% |
|
|
0.82 |
% |
|
|
1.11 |
% |
|
|
0.87 |
% |
|
|
1.14 |
% |
|
Return on
average equity |
|
|
|
|
|
|
10.80 |
% |
|
|
9.54 |
% |
|
|
12.79 |
% |
|
|
10.16 |
% |
|
|
12.85 |
% |
|
Net interest
margin (fully taxable equivalent) |
|
|
|
|
|
|
2.19 |
% |
|
|
1.85 |
% |
|
|
2.19 |
% |
|
|
2.02 |
% |
|
|
2.25 |
% |
|
Efficiency
ratio |
|
|
|
|
|
|
59.64 |
% |
|
|
66.59 |
% |
|
|
56.81 |
% |
|
|
62.90 |
% |
|
|
55.70 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BALANCE SHEET DATA |
|
|
|
|
|
|
|
|
|
June
30 |
|
March
31 |
|
June
30 |
|
Assets |
|
|
|
|
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
Cash and due
from banks |
|
|
|
|
|
|
|
|
|
$ |
38,376 |
|
|
$ |
31,957 |
|
|
$ |
31,051 |
|
|
Federal
funds sold and other short-term investments |
|
|
|
|
|
|
|
|
|
|
721,826 |
|
|
|
1,078,983 |
|
|
|
1,189,266 |
|
|
Debt
securities available for sale |
|
|
|
|
|
|
|
|
|
|
435,628 |
|
|
|
346,114 |
|
|
|
239,955 |
|
|
Debt
securities held to maturity |
|
|
|
|
|
|
|
|
|
|
352,721 |
|
|
|
254,565 |
|
|
|
121,867 |
|
|
Federal Home
Loan Bank Stock |
|
|
|
|
|
|
|
|
|
|
10,211 |
|
|
|
10,211 |
|
|
|
11,558 |
|
|
Loans held
for sale |
|
|
|
|
|
|
|
|
|
|
1,163 |
|
|
|
855 |
|
|
|
4,752 |
|
|
Total
loans |
|
|
|
|
|
|
|
|
|
|
1,111,915 |
|
|
|
1,101,902 |
|
|
|
1,238,327 |
|
|
Less
allowance for loan loss |
|
|
|
|
|
|
|
|
|
|
14,631 |
|
|
|
14,616 |
|
|
|
16,806 |
|
|
Net loans |
|
|
|
|
|
|
|
|
|
|
1,097,284 |
|
|
|
1,087,286 |
|
|
|
1,221,521 |
|
|
Premises and
equipment, net |
|
|
|
|
|
|
|
|
|
|
41,088 |
|
|
|
41,413 |
|
|
|
42,906 |
|
|
Bank-owned
life insurance |
|
|
|
|
|
|
|
|
|
|
52,963 |
|
|
|
52,720 |
|
|
|
52,507 |
|
|
Other real
estate owned |
|
|
|
|
|
|
|
|
|
|
2,343 |
|
|
|
2,343 |
|
|
|
2,343 |
|
|
Other
assets |
|
|
|
|
|
|
|
|
|
|
27,605 |
|
|
|
23,436 |
|
|
|
23,360 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
|
|
|
|
|
|
|
|
$ |
2,781,208 |
|
|
$ |
2,929,883 |
|
|
$ |
2,941,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing deposits |
|
|
|
|
|
|
|
|
|
$ |
903,334 |
|
|
$ |
918,907 |
|
|
$ |
956,961 |
|
|
Interest-bearing deposits |
|
|
|
|
|
|
|
|
|
|
1,591,249 |
|
|
|
1,663,390 |
|
|
|
1,643,115 |
|
|
Total deposits |
|
|
|
|
|
|
|
|
|
|
2,494,583 |
|
|
|
2,582,297 |
|
|
|
2,600,076 |
|
|
Other
borrowed funds |
|
|
|
|
|
|
|
|
|
|
30,000 |
|
|
|
85,000 |
|
|
|
60,000 |
|
|
Long-term
debt |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
- |
|
|
|
20,619 |
|
|
Other
liabilities |
|
|
|
|
|
|
|
|
|
|
13,516 |
|
|
|
16,984 |
|
|
|
12,174 |
|
|
Total Liabilities |
|
|
|
|
|
|
|
|
|
|
2,538,099 |
|
|
|
2,684,281 |
|
|
|
2,692,869 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity |
|
|
|
|
|
|
|
|
|
|
243,109 |
|
|
|
245,602 |
|
|
|
248,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
|
|
|
|
|
|
|
|
|
$ |
2,781,208 |
|
|
$ |
2,929,883 |
|
|
$ |
2,941,086 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MACATAWA
BANK CORPORATION |
|
SELECTED
CONSOLIDATED FINANCIAL DATA |
|
(Unaudited) |
|
(Dollars in thousands except per share information) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly |
|
Year to Date |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2nd
Qtr |
|
1st
Qtr |
|
4th
Qtr |
|
3rd
Qtr |
|
2nd
Qtr |
|
|
|
|
|
|
|
|
2022 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
EARNINGS SUMMARY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income |
|
$ |
14,843 |
|
|
$ |
12,665 |
|
|
$ |
12,826 |
|
|
$ |
14,296 |
|
|
$ |
14,457 |
|
|
$ |
27,508 |
|
|
$ |
28,947 |
|
|
Provision
for loan losses |
|
|
- |
|
|
|
(1,500 |
) |
|
|
(750 |
) |
|
|
(550 |
) |
|
|
(750 |
) |
|
|
(1,500 |
) |
|
|
(750 |
) |
|
Total
non-interest income |
|
|
5,131 |
|
|
|
4,965 |
|
|
|
5,346 |
|
|
|
5,642 |
|
|
|
6,169 |
|
|
|
10,096 |
|
|
|
12,707 |
|
|
Total
non-interest expense |
|
|
11,913 |
|
|
|
11,739 |
|
|
|
11,337 |
|
|
|
11,550 |
|
|
|
11,718 |
|
|
|
23,652 |
|
|
|
23,203 |
|
|
Federal
income tax expense |
|
|
1,493 |
|
|
|
1,391 |
|
|
|
1,369 |
|
|
|
1,736 |
|
|
|
1,840 |
|
|
|
2,884 |
|
|
|
3,605 |
|
|
Net
income |
|
$ |
6,568 |
|
|
$ |
6,000 |
|
|
$ |
6,216 |
|
|
$ |
7,202 |
|
|
$ |
7,818 |
|
|
$ |
12,568 |
|
|
$ |
15,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
earnings per common share |
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.37 |
|
|
$ |
0.46 |
|
|
Diluted
earnings per common share |
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.18 |
|
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
0.37 |
|
|
$ |
0.46 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MARKET DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value
per common share |
|
$ |
7.10 |
|
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.10 |
|
|
$ |
7.26 |
|
|
Tangible
book value per common share |
|
$ |
7.10 |
|
|
$ |
7.17 |
|
|
$ |
7.41 |
|
|
$ |
7.38 |
|
|
$ |
7.26 |
|
|
$ |
7.10 |
|
|
$ |
7.26 |
|
|
Market value
per common share |
|
$ |
8.84 |
|
|
$ |
9.01 |
|
|
$ |
8.82 |
|
|
$ |
8.03 |
|
|
$ |
8.75 |
|
|
$ |
8.84 |
|
|
$ |
8.75 |
|
|
Average
basic common shares |
|
|
34,253,846 |
|
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,254,306 |
|
|
|
34,194,264 |
|
|
Average
diluted common shares |
|
|
34,253,846 |
|
|
|
34,254,772 |
|
|
|
34,229,664 |
|
|
|
34,190,264 |
|
|
|
34,193,016 |
|
|
|
34,254,306 |
|
|
|
34,194,264 |
|
|
Period end
common shares |
|
|
34,253,147 |
|
|
|
34,253,962 |
|
|
|
34,259,945 |
|
|
|
34,189,799 |
|
|
|
34,192,317 |
|
|
|
34,253,147 |
|
|
|
34,192,317 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on
average assets |
|
|
0.92 |
% |
|
|
0.82 |
% |
|
|
0.85 |
% |
|
|
0.98 |
% |
|
|
1.11 |
% |
|
|
0.87 |
% |
|
|
1.14 |
% |
|
Return on
average equity |
|
|
10.80 |
% |
|
|
9.54 |
% |
|
|
9.84 |
% |
|
|
11.52 |
% |
|
|
12.79 |
% |
|
|
10.16 |
% |
|
|
12.85 |
% |
|
Net interest
margin (fully taxable equivalent) |
|
|
2.19 |
% |
|
|
1.85 |
% |
|
|
1.85 |
% |
|
|
2.04 |
% |
|
|
2.19 |
% |
|
|
2.02 |
% |
|
|
2.25 |
% |
|
Efficiency
ratio |
|
|
59.64 |
% |
|
|
66.59 |
% |
|
|
62.39 |
% |
|
|
57.93 |
% |
|
|
56.81 |
% |
|
|
62.90 |
% |
|
|
55.70 |
% |
|
Full-time
equivalent employees (period end) |
|
|
315 |
|
|
|
311 |
|
|
|
311 |
|
|
|
318 |
|
|
|
321 |
|
|
|
315 |
|
|
|
321 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSET QUALITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
charge-offs |
|
$ |
60 |
|
|
$ |
35 |
|
|
$ |
22 |
|
|
$ |
22 |
|
|
$ |
30 |
|
|
$ |
95 |
|
|
$ |
80 |
|
|
Net
charge-offs/(recoveries) |
|
$ |
(15 |
) |
|
$ |
(227 |
) |
|
$ |
(107 |
) |
|
$ |
(276 |
) |
|
$ |
(104 |
) |
|
$ |
(242 |
) |
|
$ |
(148 |
) |
|
Net
charge-offs to average loans (annualized) |
|
|
-0.01 |
% |
|
|
-0.08 |
% |
|
|
-0.04 |
% |
|
|
-0.09 |
% |
|
|
-0.03 |
% |
|
|
-0.04 |
% |
|
|
-0.02 |
% |
|
Nonperforming loans |
|
$ |
90 |
|
|
$ |
90 |
|
|
$ |
92 |
|
|
$ |
420 |
|
|
$ |
433 |
|
|
$ |
90 |
|
|
$ |
433 |
|
|
Other real
estate and repossessed assets |
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
$ |
2,343 |
|
|
Nonperforming loans to total loans |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.01 |
% |
|
|
0.04 |
% |
|
|
0.03 |
% |
|
|
0.01 |
% |
|
|
0.03 |
% |
|
Nonperforming assets to total assets |
|
|
0.09 |
% |
|
|
0.08 |
% |
|
|
0.08 |
% |
|
|
0.10 |
% |
|
|
0.09 |
% |
|
|
0.09 |
% |
|
|
0.09 |
% |
|
Allowance
for loan losses |
|
$ |
14,631 |
|
|
$ |
14,616 |
|
|
$ |
15,889 |
|
|
$ |
16,532 |
|
|
$ |
16,806 |
|
|
$ |
14,631 |
|
|
$ |
16,806 |
|
|
Allowance
for loan losses to total loans |
|
|
1.32 |
% |
|
|
1.33 |
% |
|
|
1.43 |
% |
|
|
1.45 |
% |
|
|
1.36 |
% |
|
|
1.32 |
% |
|
|
1.36 |
% |
|
Allowance for loan losses to total loans (excluding PPP loans) |
|
1.32 |
% |
|
|
1.34 |
% |
|
|
1.49 |
% |
|
|
1.56 |
% |
|
|
1.57 |
% |
|
|
1.32 |
% |
|
|
1.57 |
% |
|
Allowance
for loan losses to nonperforming loans |
|
|
16256.67 |
% |
|
|
16240.00 |
% |
|
|
17270.65 |
% |
|
|
3936.19 |
% |
|
|
3881.29 |
% |
|
|
16256.67 |
% |
|
|
3881.29 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
equity to average assets |
|
|
8.55 |
% |
|
|
8.62 |
% |
|
|
8.66 |
% |
|
|
8.48 |
% |
|
|
8.70 |
% |
|
|
8.59 |
% |
|
|
8.87 |
% |
|
Common
equity tier 1 to risk weighted assets (Consolidated) |
|
|
16.54 |
% |
|
|
16.92 |
% |
|
|
17.24 |
% |
|
|
17.43 |
% |
|
|
17.10 |
% |
|
|
16.54 |
% |
|
|
17.10 |
% |
|
Tier 1
capital to average assets (Consolidated) |
|
|
9.13 |
% |
|
|
8.82 |
% |
|
|
8.72 |
% |
|
|
8.51 |
% |
|
|
9.48 |
% |
|
|
9.13 |
% |
|
|
9.48 |
% |
|
Total
capital to risk-weighted assets (Consolidated) |
|
|
17.47 |
% |
|
|
17.88 |
% |
|
|
18.32 |
% |
|
|
18.58 |
% |
|
|
19.66 |
% |
|
|
17.47 |
% |
|
|
19.66 |
% |
|
Common
equity tier 1 to risk weighted assets (Bank) |
|
|
16.04 |
% |
|
|
16.39 |
% |
|
|
16.70 |
% |
|
|
16.88 |
% |
|
|
16.57 |
% |
|
|
16.04 |
% |
|
|
16.57 |
% |
|
Tier 1
capital to average assets (Bank) |
|
|
8.85 |
% |
|
|
8.55 |
% |
|
|
8.44 |
% |
|
|
8.24 |
% |
|
|
8.49 |
% |
|
|
8.85 |
% |
|
|
8.49 |
% |
|
Total
capital to risk-weighted assets (Bank) |
|
|
16.97 |
% |
|
|
17.35 |
% |
|
|
17.77 |
% |
|
|
18.02 |
% |
|
|
17.73 |
% |
|
|
16.97 |
% |
|
|
17.73 |
% |
|
Common
equity to assets |
|
|
8.74 |
% |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.74 |
% |
|
|
8.44 |
% |
|
Tangible
common equity to assets |
|
|
8.74 |
% |
|
|
8.38 |
% |
|
|
8.67 |
% |
|
|
8.69 |
% |
|
|
8.44 |
% |
|
|
8.74 |
% |
|
|
8.44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
END
OF PERIOD BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio loans |
|
$ |
1,111,915 |
|
|
$ |
1,101,902 |
|
|
$ |
1,108,993 |
|
|
$ |
1,136,613 |
|
|
$ |
1,238,327 |
|
|
$ |
1,111,915 |
|
|
$ |
1,238,327 |
|
|
Earning
assets |
|
|
2,655,706 |
|
|
|
2,802,498 |
|
|
|
2,803,853 |
|
|
|
2,768,507 |
|
|
|
2,803,634 |
|
|
|
2,655,706 |
|
|
|
2,803,634 |
|
|
Total
assets |
|
|
2,781,208 |
|
|
|
2,929,883 |
|
|
|
2,928,751 |
|
|
|
2,901,500 |
|
|
|
2,941,086 |
|
|
|
2,781,208 |
|
|
|
2,941,086 |
|
|
Deposits |
|
|
2,494,583 |
|
|
|
2,582,297 |
|
|
|
2,577,958 |
|
|
|
2,553,175 |
|
|
|
2,600,076 |
|
|
|
2,494,583 |
|
|
|
2,600,076 |
|
|
Total
shareholders' equity |
|
|
243,109 |
|
|
|
245,602 |
|
|
|
254,005 |
|
|
|
252,213 |
|
|
|
248,217 |
|
|
|
243,109 |
|
|
|
248,217 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE BALANCES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
portfolio loans |
|
$ |
1,103,955 |
|
|
$ |
1,092,673 |
|
|
$ |
1,109,863 |
|
|
$ |
1,182,633 |
|
|
$ |
1,324,915 |
|
|
$ |
1,098,346 |
|
|
$ |
1,362,946 |
|
|
Earning
assets |
|
|
2,724,714 |
|
|
|
2,788,254 |
|
|
|
2,780,236 |
|
|
|
2,804,157 |
|
|
|
2,669,862 |
|
|
|
2,756,363 |
|
|
|
2,603,948 |
|
|
Total
assets |
|
|
2,847,381 |
|
|
|
2,917,462 |
|
|
|
2,917,569 |
|
|
|
2,948,664 |
|
|
|
2,809,487 |
|
|
|
2,882,228 |
|
|
|
2,738,539 |
|
|
Deposits |
|
|
2,537,111 |
|
|
|
2,569,315 |
|
|
|
2,564,961 |
|
|
|
2,605,043 |
|
|
|
2,468,398 |
|
|
|
2,553,124 |
|
|
|
2,395,112 |
|
|
Total
shareholders' equity |
|
|
243,352 |
|
|
|
251,600 |
|
|
|
252,606 |
|
|
|
249,994 |
|
|
|
244,516 |
|
|
|
247,453 |
|
|
|
242,779 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Contact:
Jon W. Swets
Chief Financial Officer
616-494-7645
jswets@macatawabank.com
Grafico Azioni Macatawa Bank (NASDAQ:MCBC)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni Macatawa Bank (NASDAQ:MCBC)
Storico
Da Lug 2023 a Lug 2024